DS Smith has bumped up its sales and profit forecasts as the cardboard specialist capitalises on changes in consumer behaviour, writes Charlie TaylorKroll.
The FTSE 100 company, which makes cardboard packaging for companies such as Laithwaite’s and Lavazza, said that sales and adjusted operating profit for the half year to Oct 2018 were expected to be “materially” higher than the same period last year.
The packaging company has been boosted by a change in consumer behaviour, as shoppers move away from traditional stores on the high street. A boom in online shopping means that the demand for packaging from retailers has steadily risen. Sales at DS Smith have doubled since 2012, after it became a supplier of cardboard boxes to online retail titan Amazon.
The company has also been on an acquisition spree over the past year, including a £1.45bn deal for Spain’s Europack.
Miles Roberts, chief executive of DS Smith, said he was pleased with the half-year performance.
He added that the company “expects good ongoing market share growth” and “views the future with confidence”.
A wave of acquisitions has left DS Smith confident for the future
Miles Roberts said he expected “good ongoing growth” in market share